Granite Company purchased a machine costing $124,000, terms 2/10, n/30. The machine was shipped FOB shipping point and freight charges were $2,400. The machine requires special mounting and wiring connections costing $10,400. When installing the machine, $1,900 in damages occurred. Compute the cost recorded for this machine assuming Granite paid within the discount period.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Granite Company purchased a machine costing $124,000, terms 2/10, n/30. The machine was shipped FOB shipping point and freight charges were $2,400. The machine requires special mounting and wiring connections costing $10,400. When installing the machine, $1,900 in damages occurred. Compute the cost recorded for this machine assuming Granite paid within the discount period.

 

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